Bharat Dynamics Limited Earnings Summary — Q1 FY2027
Bharat Dynamics Reports Massive Bottom-Line Surge in Q1 FY2027 Amid Enhanced Execution
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 19.2% sequentially in Q1 FY2027.
- Revenue of ₹572 Cr is 130.8% higher year-on-year.
- Revenue has compounded at -16.3% annualised over the last 10 quarters.
- Net profit of ₹119 Cr is 547.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -32.6% annualised across the period.
- Operating margin stands at 14.5% in Q1 FY2027.
- Operating margin expanded by 3282 bps year-on-year.
- Over the last two years operating margin has expanded by 4189 bps.
- PBT margin is 28.9%.
- Expense growth of 66.8% remained below revenue growth of 130.8%.
- Operating profit of ₹83 Cr is 283.1% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 68/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 572 | 480 | 567 | 1,147 | 248 | 1,777 | 832 | 545 | 191 | 854 |
| Expenses | Volatile | 489 | 425 | 541 | 960 | 293 | 1,478 | 705 | 446 | 243 | 538 |
| Operating Profit | Volatile | 83 | 55 | 26 | 188 | -45 | 299 | 127 | 99 | -52 | 316 |
| Operating Margin | Volatile | 14.5% | 11.5% | 4.6% | 16.4% | -18.3% | 16.8% | 15.3% | 18.1% | -27.4% | 37.0% |
| Other Income | Improving | 103 | 119 | 97 | 121 | 87 | 100 | 84 | 86 | 80 | 88 |
| Interest | Improving | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | Stable | 20 | 20 | 19 | 19 | 18 | 20 | 18 | 18 | 16 | 16 |
| Profit Before Tax | Improving | 166 | 154 | 103 | 288 | 23 | 378 | 193 | 166 | 11 | 388 |
| Tax | Improving | 47 | 41 | 30 | 72 | 5 | 105 | 46 | 44 | 4 | 99 |
| Net Profit | Volatile | 119 | 113 | 73 | 216 | 18 | 273 | 147 | 123 | 7 | 289 |
| Net Margin | Volatile | 20.8% | 23.6% | 12.9% | 18.8% | 7.4% | 15.3% | 17.7% | 22.5% | 3.8% | 33.8% |
Key Takeaways
- Net profit witnessed a dramatic 547% year-on-year increase, rising from ₹1,835 lakhs in Q1 FY26 to ₹11,879 lakhs in Q1 FY27.
- Revenue from operations grew by 131% YoY, reflecting a significant ramp-up in delivery schedules and order execution.
- The company continues to hold significant non-moving inventory (₹8,327 lakhs) older than 5 years, though management deems provisions unnecessary due to excess customer advances.
- The Audit Committee could not be reconstituted due to the expiration of Independent Directors' tenures, a process controlled by the Government of India.
- Standalone results show a healthy Profit Before Tax (PBT) margin of 28.9%, compared to just 9.3% in the same quarter last year.
- Cost of materials consumed as a percentage of sales dropped significantly compared to the prior sequential quarter, aiding margin expansion.
Management Guidance
Management remains focused on increasing 'Indigenous Content' across missile systems to improve long-term margins and align with the 'Atmanirbhar Bharat' initiative. While specific quarterly guidance was not provided, the robust order book exceeding ₹15,000 Cr provides long-term production visibility.
Sentiment Shift
Improving
The massive YoY growth in both revenue and profitability indicates a break from the cyclical lows seen in previous Q1 cycles, showing improved execution consistency.
Outlook
The outlook remains strong backed by a near-monopoly in guided missiles and a massive order book. However, short-term performance will continue to be influenced by government procurement cycles and the timely appointment of board members by the Ministry of Defence.
From the Annual Report (Key Quotes)
“No provision for redundancy were considered necessary, in view of advances received against these firm orders/LOI being in excess of the assets acquired.”
“Reconstitution of Audit Committee... could not be completed following expiration of the tenure of Independent Directors.”
“The figures of quarter ended 31 March 2026 are the balancing figures between the audited figures of the full financial year.”
Official Quarterly Documents
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This summary is AI-generated from Bharat Dynamics Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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